The payout includes a maximum of $5.8 million in legal costs, and an estimated $50,000 cost for the "verification of customer data".

It was alleged that the company effectively charged more than 400 per cent interest (per year) for one-month loans between April 2010 and June 2013 — with some loans attracting rates which exceeded 600 per cent.

This was despite the fact that Queensland had changed its laws in 2008, imposing a cap of 48 per cent (annually) for consumer credit loans.

Maurice Blackburn, the lawyers representing the borrowers, claimed that Cash Converters tried to circumvent the law by deliberately and "unconscionably" charging excessive brokerage fees for its "cash advances".

The plaintiff law firm commenced the $17 million lawsuit two years ago in the Federal Court on behalf of lead plaintiff Kim McKenzie, a carer and disability pensioner.

"This settlement will be funded from existing resources," Cash Converters said in a statement on Monday.

"The total cost will be expensed in the current financial year and is deductible for tax purposes."

The next step to finalise the settlement is for both parties to obtain approval from the court.

In 2015, the company settled two class actions for $23 million arising out of its questionable lending practices.

Cash Converters stocks surged 9.4 per cent to 29 cents at 12:00pm (AEDT), after confirming its latest settlement in a statement today.

But its share price remains near historic lows, having fallen 80 per cent since its record high of $1.45 (in mid-2013).

Second lawsuit to be contested

While Cash Converters has settled yet another case, it has decided to defend another one "vigorously".

The second case is listed for hearing today in the Federal Court. It was also initiated by Maurice Blackburn on behalf of more than 60,000 Queenslanders, including lead plaintiff Sean Lynch, a disability pensioner who took out three loans with the company.

However, the plaintiffs in this case took out personal loans ranging from $600 to $2,000 for periods of six months.

"This class action is a perfect example of how the class action regime works to promote access to justice for the most disadvantaged in our community," Maurice Blackburn principal lawyer Miranda Nagy said.

"We are really pleased with this result [the $16.4 million settlement], but are focused on winning the rest of our case and obtaining justice for an even bigger group of people who took out Cash Converters' Personal Loans."

Maurice Blackburn estimated that when it launched the case in 2015, Cash Converters would potentially be up for $30 million in compensation.

The case will be heard in the Federal Court, Sydney registry, for the next three weeks.

In her resignation from politics, Kelly O'Dwyer said she feared another miscarriage in Canberra, far from home. Her announcement is shocking for more than just party-political reasons, writes Emma A. Jane.